What Determines Government Spending Multipliers?

Author/creator Mller, Gernot Author
Other author Meier, Andr Author
Other author Corsetti, Giancarlo Author
Format Electronic
Publication InfoWashington : International Monetary Fund
Description44 p.
Supplemental ContentFull text available from Ebook Central - Academic Complete

Summary Annotation This paper studies how the effects of government spending vary with the economic environment. Using a panel of OECD countries, we identify fiscal shocks as residuals from an estimated spending rule and trace their macroeconomic impact under different conditions regarding the exchange rate regime, public indebtedness, and health of the financial system. the unconditional responses to a positive spending shock broadly confirm earlier findings. However, conditional responses differ systematically across exchange rate regimes, as real appreciation and external deficits occur mainly under currency pegs. We also find output and consumption multipliers to be unusually high during times of financial crisis.
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Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
ISBN9781475504446
ISBN1475504446 (E-Book) Active Record
Stock number00013468

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